Los Angeles daily herald., 1887-05-05
rho yause of Booms.


The cause of Rooms.
Divers newspapers in all parts Of
the United States are discussing the
fact that a great deal OF capital is now
eeking investment in real estate, and
thus creating what are termed
"b ooms,' in many cities throughout
the land. The reasons for this are
sought and the fact variously ex-
planned. There are two points in
this matter of interest to US in South
California. First, the excitement in
real property is by no means confined
to this section, but is more or less
general in all parts OF the Union, and
the movement is no more momentafy
tha n it is local. 1t began in the great
center OF capital and business of the
continent, New York, some years
ago, and it has spread to nearly all
portions OF the Union, continuing at
aim ost flood tide, reaching its highest
point now at one center, and again at
another. There are few large cities
" here it has not been felt, and at no
point has there yet been any violent
reaction. Everywhere values hold
their own ia a very marked manner
The second point OF interest is that
the same causes which are producing
this effect about Los Angeles are ope-
rating at the other points where the
excitement has been felt.
1t is hardly right TO call this move
ment in financial circles a boom, or
anexcitement. There has not been
SO much Of the speculative element
in the situation as might appear at
first blush. This affair is one OF the
most natural in the philosophy OF
business, and is founded on the
soundest principles OF finance. Popu-
lation is pressing into the United
States in an uRwonted degree. Each
individual brings in more or less cap
ial. There then goes on constant
Increment to the two great factors in
progress-labor and capital. Then
a general confidence has succeeded
in the minds of all to the timid doubts
of the years preceding. Capital which
had been locked up useless in the
vaults has been put into active opera
ton, and labor which had been howl
ing for bread finds remunerative en-
ployment in the active operations oi
capital. We cannot see how in this
respect the conclusion is to be escaped
that this general feeling OF confidence
il fostered, increased and made per-
manent by the notably earnest and
honest national administration OF the
first Democratic President the coun-
try has had for quarter oil a CEN
tury. There are no "Blaek Fri
days engineered from cor
rupt Treasury Department. There
il an entire absence of that
tampering with business, which un-
der the empircism OF Republican
Statesmen cursed the county after
the close of the war. Mr.. Cleveland
and his cabinet have been taking
conscientious care of their official
business, and have been letting the
people run their own affairs with
ont interference.
The influx OF new people from
abroad, and the national increase OF
native population, presses immigration
into new portions of the natural do
minop. and the concomitant OF this
m ovement is the building OF lines OF
railroads to the new homes oil the
settlers. With these extentlons OF
70 ads grow up, new towns at central
DO ints along the hines. The mills are
busy furnishing iron for the roads,
lumber for the homes and the neces-
sities OF life for the people.
A constantly increasing quantity OF
th Q agricultural products OF the coun-
try find ready market near where
they grow, and bring correspond
ingly higher prices to the growers.
Then with the natural enriching OF
the country comes lower value for
money. The lower interest sinks,
the higher goes the value of product
i've real property.
Here is about all there is OF this
philosophy of the boom in real es-
hate. The whole matter is Of the
most natural character, and the cor
nectness of these views is borne out
BY the patent fact that at all points
where any excitement has been de-
there has been great up
building Of the various cities 80 af'